Cracker business drops 60 per cent for this Diwali

This coming Diwali, to be celebrated on November 7, may not glitter much as the cracker dealers and retailers are not paying much interest to continue the business this year. The Supreme Court in its recent directions, imposed restrictions on the burning of firecrackers. The apex court, in its directions restricted the crackers celebrations for only two hours.Meanwhile, with the introduction of the GST, the businessmen are forced to sell the crackers on MRP only. With the two major reasons, the traders and dealers of Diwali crackers are not coming forward to continue the business.

Normally, 80 per cent of the crackers and other items being bought from the much known Sivakasi town of Tamil Nadu. The manufacturers printing the MRP over Rs 400 on any small cracker and other items. However, the dealer's profit share and transportation expenditure including in the MRP. Even the retailers are selling the crackers and other items by giving 80 to 85 discounts. 

After the introduction of the GST, the retailer must have to sell the crackers on the MRP only. With this the retailers are facing tough time to lead the business. Now, the manufacturers are also printing the actual MRP on the packs and the retailers must sell the same to the customers.

"With the GST restrictions and Supreme Court directions, the business is badly affected. It is true that we are selling the crackers with huge discounts, but now we have to sell with the MRP which is printed on the packs. Meanwhile, there is a big change among the people and in the wake of environmental issues, the enforcement authorities must implement the Supreme Court directions. As a result, the business has come down to 60 per cent this year," Gnavel Muttu, wholesale businessman of Tamil Nadu told The Hans India here on Thursday. 

The government officials are saying that they are aware about the Supreme Court directions. However, the orders have not been received so far. When asked about the official communication on the issue, a senior Revenue Officer said that they did not have such order copy so far. During the past one decade, over Rs 80 crore cracker business registering during the Diwali season.However, the wholesale dealers are now saying that 40 per cent of the retailer businessmen dropped after the developments. Meanwhile, like earlier, the local bodies and police are not giving permission for number of shops. The climate conditions and the several restrictions being imposed by the local authorities to issue permissions, the retailers are not coming forward to lead the business.